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The Use of Experiment in Simulation of Debt of Local Government Units

In: Neuroeconomic and Behavioral Aspects of Decision Making

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  • Beata Zofia Filipiak

    (University of Szczecin)

Abstract

The chapter presents the use of shock analysis in the measurement of the financial stability of the local government units. This approach is based on the use of the experiment in forecasting the debt of local government units. The aim of the study is to demonstrate the possibilities of applying the experiment with the use of the shock analysis in monitoring the financial stability of the local government units, which is particularly important in the situation of having these debt units. In the first part of the study, the importance and the need for multi-variant approach to the assessment of the level and the possibility of borrowing of local government units are presented. Then, the importance and use of the plane of the experiment as a tool to support decision-making process of local government indebtedness is discussed. The last part of the study presents of the use of the shock analysis as an expression of the experiment supporting the decision-making process of local government units indebtedness. The importance of this experiment in maintaining the financial stability of local government unit by selecting the appropriate approach to the conduction of the experiment was also indicated.

Suggested Citation

  • Beata Zofia Filipiak, 2017. "The Use of Experiment in Simulation of Debt of Local Government Units," Springer Proceedings in Business and Economics, in: Kesra Nermend & Małgorzata Łatuszyńska (ed.), Neuroeconomic and Behavioral Aspects of Decision Making, chapter 0, pages 377-395, Springer.
    • Handle: RePEc:spr:prbchp:978-3-319-62938-4_25
    DOI: 10.1007/978-3-319-62938-4_25
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